Strategic Management of Tesco: SWOT Analysis, Strategic Issues, and Recommendations

Business Management

TESCO 1
Contents
Introduction...........................................................................................................................................2
SWOT Analysis.....................................................................................................................................2
Strategic issue........................................................................................................................................4
Recommendation...................................................................................................................................5
Evaluation.............................................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

TESCO 2
Introduction
Strategic management is the process of developing strategies in order to gain the competitive
advantage in the market. It is a continuous planning, monitoring, and analysis of the
organisation environment (Amadeo, 2018). The company has to be analysing the business
environment to develop the strategies. There are different business models which helps the
company in identifying the strength and weaknesses of the company. In this report, Tesco has
been taken into consideration to identify the strength and weakness of the company to
develop the competitive strategies. Tesco is a British multinational groceries and general
merchandise retailer which headquarters in Welwyn, Garden City, Hertfordhire in United
Kingdom. It is the third-largest retailer in the terms of gross revenue and ninth largest
retailers in the world in the terms of revenue. It was established in 1919 with a physical store
after that it expanded by opening the shops in different areas. The company has shops in
seven countries such as Asia, Europe. The company expanded the business with the rapidly
rate across the country. The company operates in many areas to expand the business that is
why it diversified into the areas such as retaining of books, clothing, electronics, furniture,
petrol and many others (Tesco PLC, 2018).
In the beginning of the report, the SWOT analysis has been used to identify the strength and
weakness of the company. After that strategic issue faced by the company will be discussed
and then recommended the solution. The strength and limitation of the company will be
mentioned in the end of the report.

TESCO 3
SWOT Analysis
SWOT analysis is a business model which helps the company to identify the strength,
weaknesses, opportunity and threat. It is an internal analysis of the company which is
classified in the four components.
Strength
It has been seen that the Tesco achieve the many rewards for its retails excellence, customer
services, and the overall shopping experience. The company has high quality of services due
to which the numbers of customers are attracted towards the services. It is one of the largest
profitable supermarkets and high goodwill value in the world which is a biggest strength of
the company. The company has the high cash reserves ration and wide range of property
which evaluate the strong financial position of the company in each and every type of
economic cycles. The financial position of the company helps to expand the business in the
new market or it can attract the large number of customers by increasing the customer
(Hashemi, and Samani, 2017).
Weakness
The company has some areas where it has to improve in order to grab the high market share.
It has been analysed that the consumers are not buying the product as the other many product
items to having the less disposable income. The retailer of the company is highly dependent
on the UK and Europe market for its sales and did not spend the time and resources on
developing the other market. Competition is also a weakness for the company in order to gain
the competitive advantage. The retailer reduces the prices due to competition in the market
but its face the loss (Mind Tools, 2018).
Opportunity